News Brief: IMF’s Neiss Welcomes Indonesian Interest Rate Decision

March 23, 1998

IMF’s Neiss Welcomes Indonesian Interest Rate Decision

Jakarta, March 23. Hubert Neiss, Director of the International Monetary Fund’s (IMF) Asia and Pacific Department, welcomed the decision by Bank Indonesia to increase interest rates on Bank Indonesia certificates (SBI). Neiss, who is leading the IMF’s team to Indonesia to conduct the first review of Indonesia’s IMF-supported economic program said: "The decision by Bank Indonesia to raise interest rates is welcome as part of the government’s strategy to control inflation and strengthen the rupiah in the foreign exchange market. Further actions can be expected to reinforce the government’s objective."

Neiss also expressed satisfaction about progress over the past few days in the discussions on the review of the economic program. "We have had productive meetings (with the Indonesian authorities), and progress has been made in all five areas of work defined last week; monetary policy, bank restructuring, the budget and subsidies, structural reforms, and corporate debt. I expect we will continue to proceed expeditiously this week so we can conclude discussions at an early date. Our aim is to reach agreement on a comprehensive program that will help Indonesia overcome the present crisis and that has full international support," Neiss said.


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